Deutsche Bank set to seal Postbank deal

September 12, 2008

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By , FRANKFURT, September 12 – Deutsche Bank is set to seal a deal Friday to buy just under 30 percent in Germany\’s biggest retail bank Postbank for as much as three billion euros (4.2 billion dollars), press reports said.

The supervisory board of Deutsche Post, Postbank\’s parent, is due to approve the sale of 29.75 percent in the bank to Deutsche Bank at a meeting on Friday for between 2.5 and 3.0 billion euros, the reports said.

Deutsche Bank, Germany\’s biggest bank by assets, will also be given an option to buy Deutsche Post\’s remaining stake of 20.25 percent plus one share, the reports said. The remaining shares are traded on the stock market.

Deutsche Post said it will hold a news conference at 2:00 pm (1200 GMT).

In accepting Deutsche Bank\’s offer, Deutsche Post is rejecting a rival but lower bid from Spanish bank Santander for all of Deutsche Post\’s Postbank stake, the reports said.

Buying less than 30 percent in Postbank would mean that Deutsche Bank would avoid having to make at this stage an offer to buy all Postbank shares — something which might require it to raise fresh capital.

A deal between Deutsche and Postbank would be the latest in a recent flurry of consolidation in German high street banking where cooperatives and state-owned Sparkassen savings banks have a strong presence.

Two weeks ago Commerzbank struck a deal to buy Dresdner Bank for 9.8 billion euros. In July France\’s Credit Mutuel agreed to acquire Citibank\’s German business for 4.9 billion euros.